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2016 Budget Will Have Limited Impact On UK Energy Efficiency Landscape

Date: 17 March 2016

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4 pages

EXECUTIVE SUMMARY

In March 2016, the UK government announced a number of reforms to the business carbon and energy tax landscape, as the Chancellor set out the UK government’s 2016 Budget. This report provides a summary of the announcements that will impact end energy users. The notable announcements include the scrapping of the CRC Energy Efficiency Scheme after the 2018/19 compliance year, shifting of the tax burden onto the Climate Change Levy (CCL) from 2019 and a commitment to continue to protect energy prices for the energy-intensive sectors via Climate Change Agreements. Verdantix finds that these announcements will not cause a radical shake-up of the energy efficiency landscape, particularly as market participants have long been expecting the axing of the CRC. The main point of interest is that the new CCL rate will slightly increase the cost of gas from 2019, which may be advantageous to firms capable of delivering more holistic energy management strategies across both electricity and gas.

TABLE OF CONTENTS

2016 Budget Will Have Limited Impact On UK Energy Efficiency Landscape

ORGANIZATIONS MENTIONED

Ameresco, BT, DECC, Environment Agency, kWIQly, Morrisons, Sainsbury’s, Schneider Electric, Tesco